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Why Loyalty Tech Should Be a Must-Have in Your Hotel’s 2025 Budget
By Laasie.ai
Friday, 8th November 2024
 

Loyalty technology has emerged as a vital component for hotels aiming to stay competitive, enhance guest satisfaction, and boost revenue.

But as budgets are scrutinized and technology investments evaluated, why should loyalty tech find a prominent place in your 2025 budget? Let’s dive into the trends shaping the industry and why the right solution, like Laasie, could future-proof your hotel's success.

The Loyalty Evolution: Instant Gratification > Points

Gone are the days when points-based loyalty programs reigned supreme. Guests no longer want to jump through hoops, tracking points or waiting months to redeem a reward. Today's travelers, driven by convenience, want rewards here and now—instant gratification is the new loyalty currency.

That’s where Laasie sets itself apart. Traditional loyalty programs might offer the illusion of value with complex point systems, but in practice, they leave guests unengaged. Laasie’s instant rewards marketplace provides something tangible and actionable at the point of booking or even during their stay, making your loyalty strategy more compelling. As hotels strive to meet guests' modern expectations, allocating budget to solutions that deliver immediate value can keep you ahead of competitors stuck in the past.

Why Hotels Can't Afford to Ignore Loyalty Tech in 2025

According to industry insights, loyalty programs are evolving into data-rich engines that power guest personalization, direct bookings, and lifetime value strategies. In fact, research suggests hotels with strong loyalty programs outperform others in terms of guest retention and direct bookings—two key factors in staying competitive as online travel agencies (OTAs) continue to siphon away business.

Here’s why loyalty tech should be a top priority for 2025:

Personalization is Power: The future of hotel loyalty lies in personalized guest experiences. Loyalty tech doesn’t just drive repeat bookings—it gives you the data to understand your guests better. Laasie’s platform integrates with your Property Management System (PMS), Central Reservation System (CRS), and Customer Relationship Management (CRM) tools, providing actionable guest insights in real-time. First-party data collection will only grow in importance as third-party cookies phase out.

Direct Booking Conversion: If increasing direct bookings is a priority for your hotel in 2025 (hint: it should be), loyalty tech will help you achieve that goal. While traditional loyalty programs offer deferred rewards, Laasie’s Convert Web product is designed to drive immediate action with real-time incentives. With a 43% conversion lift, it's clear that rewarding lookers at the moment of interest turns them into bookers.

Cost-Effective Solutions: Traditional loyalty programs can be costly to maintain, requiring significant investments in marketing, administration, and technology. In contrast, Laasie offers a pay-for-performance model, meaning you only pay when the solution delivers value. The platform can be implemented in a matter of weeks, not months, making it a budget-friendly choice for independent hotels and groups looking for quick, effective results.

Flexible and Scalable: Unlike rigid points-based systems, Laasie’s Flex On Demand product allows you to reward guests for almost anything, anytime—whether it’s solving a service recovery issue, offering a booking incentive, or enhancing a group stay. The flexibility of the product allows hotels to adapt to market changes and guest preferences, which is key in today’s fast-moving hospitality landscape.

The OTA Factor: As OTAs continue to grow their market share, hotels need tools to shift that share back to direct channels. Investing in loyalty technology that offers guests tangible rewards—whether through rate parity or immediate booking incentives—can be the key to reducing your OTA dependency. Laasie Retain helps you do just that by integrating seamlessly with your existing systems, giving you control over your loyalty strategy and, more importantly, your data.

Future-Proofing Your 2025 Budget

While loyalty programs are not a new concept, the technology behind them has radically transformed. A points-based system might offer incremental rewards, but it doesn’t match the pace or preferences of today’s travelers. The shift towards immediate rewards is more than a trend; it’s the future of loyalty.

Budgeting for loyalty tech in 2025 means investing in a guest-centric strategy that drives real-time engagement, fosters repeat business, and boosts your direct booking rates—all while providing a cost-effective solution that delivers measurable ROI.

Laasie is a white-labeled loyalty solution that pairs AI and rewards to incentivize direct bookings, first-party data collection, shift share from OTAs, drive guest spend and increase average daily rates.

www.laasie.ai

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